§ 36-12.1-26. Internal revenue code qualification. (a) Intent. It is intended that the OPEB System and the Rhode Island OPEB System Trust satisfy the requirements of § 115 or § 501(c)(9) of the Internal Revenue Code of 1986 as amended from time to time, 26 U.S.C. §§ 115, 501(c)(9) -, (hereinafter referred to as the "Code"), in form and operation, to the extent that those requirements apply to a governmental use trust under § 115 or a voluntary employee benefit association under § 501(c)(9) of the Code. To this end, the following provisions shall be applicable, administered, and interpreted in a manner consistent with maintaining the tax qualification of the OPEB System, and shall supersede any conflicting provisions of chapters 12, 12.1 and 12.2 of this title, [of chapter 16 of title 16, or of chapter 21 of title 45].

(b) Exclusive benefit. All funds of the OPEB System shall be held in one or more trusts as provided in § 36-12.1-21 or if permitted, in accordance with § 401(f) of the code [26 U.S.C. § 401(f)], in one or more custodial accounts treated as trusts or a combination thereof. Under any trust or custodial account, it shall be impossible at any time prior to the satisfaction of all liabilities with respect to employees and their beneficiaries, for any part of the corpus or income to be used for, or diverted to, purposes other than the payment of OPEB allowances and other post employment benefits to Retired Employees and their beneficiaries.

History of Section. (P.L. 2008, ch. 9, art. 4, § 3.)